Becoming a real estate agent in New York can be rather lucrative, but not all agents make a nice living. Understanding how much NY real estate agents make can help you better decide if this is the right career for you.
If you’re interested in becoming a real estate agent, you need to understand how much money you can expect to make. The average amount of money a real estate agent makes in the state of New York each year is $88,872, according to Indeed.com.
Commissions for realtors vary widely depending on location and market conditions. In New York, commissions are typically around 6% and are split between the listing and buyer agents.
New York Real Estate Agent Salary
Real estate agents help people buy and sell homes, condos, apartments, and land. They also help businesses rent and sell properties. Most real estate professionals work for themselves or in a brokerage. It’s common for real estate agents not to make a salary but to earn their income 100% from commissions.
The average income of a New York real estate agent can be anywhere from $84,000 to $148,000 per year or $40 to $71 per hour.
What to Expect to Make Your First Year as a New York Real Estate Agent
Unlike many salary-based jobs, a real estate agent’s pay depends on the number of sales they make. Typically, this translates to a commission, which is usually between 1 and 6% of the sale price, divided between the agents and their brokerage.
Before earning a living as a real estate agent, you need to complete your training and obtain a license. This can take between 10 days and 6 months to complete, depending on the real estate school you choose.
Once you have your license, you can begin searching for work with a brokerage. Be sure to find a broker who is willing to mentor you and guide you through the process of becoming a licensed real estate agent. This can be a great way to get experience and help you build your client base before you decide whether or not to pursue a full-time career.
Most real estate agents start off by working part-time or as a freelancer to make extra income while they build up a client base. They are then able to increase their earning potential by working full-time when they have more clients and sell more homes.
During this time, they are also required to complete a certain amount of Continuing Education (CE) credits. CE credit requirements vary by state, but all New York licensees are required to complete 22.5 hours of CE credits every two-year license renewal period.
While you are completing your training, make sure to set aside plenty of money for exam prep and other expenses. This can be expensive, but it will allow you to pass your licensing exam with ease.
It is also important to be prepared to go out and seek your first real estate clients and to network. These clients can help you generate your first commissions.
While it is common for a new real estate agent to make very little income during their first year, those who stick with the profession typically see the most success. They are able to increase their income significantly after a year of hard work.
How to Make More Money as a Real Estate Agent in New York
To increase your earnings, focus on four key aspects of your business: affordable marketing opportunities, effective networking, smart earning strategies, and industry education. These tactics will allow you to get more listings, boost your commissions, and grow your business quickly in your first year.
Some of the Ways to New Agents can Boost Earnings
Hit all the Area Events
Farmers’ markets, festivals, home, and garden shows, and crafts fairs are great ways to connect with local buyers and sellers. They’re also a great way to network and get your name out there as an experienced agent who can provide quality services to local residents.
Find a Broker
A good brokerage will introduce you to their network, offer training and support, and give you access to systems like the MLS.
Build Your List
In the first few months, it’s important to establish a strong list of clients. This will help you secure repeat business and grow your commissions as you develop relationships with local homeowners and commercial landlords.
Stay Busy
There are certain times of the year when real estate agents earn more than others, so be sure to plan accordingly.
If you’re considering becoming a real estate agent in New York, you should understand how much real estate agents make in NY. This will help you determine if it’s the right career for you and how to approach it.
